Accounting Cycle quiz Financial Accounting Quiz On Aug 25, 2024 Share /10 12345678910 Accounting Cycle 10 questions in 10 minutes Pass Score 70% 1 / 10 A company has purchased a tract of land. It expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. The land should be reported as: a long-term investment land expense property, plant, and equipment an intangible asset 2 / 10 When a net loss has occurred, Income Summary is : debited and Owner’s Capital is credited credited and Owner’s Drawings is debited debited and Owner’s Drawings is credited credited and Owner’s Capital is debited 3 / 10 An account that will have a zero balance after closing entries have been journalized and posted is : Service Revenue Prepaid Insurance Supplies Accumulated Depreciation—Equipment 4 / 10 Which of the following statements is incorrect concerning the worksheet ? Financial statements can be prepared directly from the worksheet before journalizing and posting the adjusting entries The worksheet cannot be used as a basis for posting to ledger accounts The worksheet is essentially a working tool of the accountant The worksheet is distributed to management and other interested parties 5 / 10 The proper order of the following steps in the accounting cycle is : journalize transactions, post to ledger accounts, prepare unadjusted trial balance, journalize and post adjusting entries prepare unadjusted trial balance, journalize and post adjusting entries, journalize transactions, post to ledger accounts prepare unadjusted trial balance, journalize transactions, post to ledger accounts, journalize and post adjusting entries journalize transactions, prepare unadjusted trial balance, post to ledger accounts, journalize and post adjusting entries 6 / 10 When the Company purchased supplies worth $100, it incorrectly recorded a credit to Supplies for $1,000 and a debit to Cash for $1,000. Before correcting this error : Cash is understated and Supplies is overstated Cash is overstated and Supplies is understated Cash is overstated and Supplies is overstated Cash is understated and Supplies is understated 7 / 10 In a classif ed balance sheet, assets are usually classifed using the following categories : current assets; long-term assets; property, plant, and equipment; and intangible assets current assets; long-term investments; property, plant, and equipment; and intangible assets current assets; long-term investments; property, plant, and equipment; and tangible assets current assets; long-term investments; tangible assets; and intangible assets 8 / 10 Current assets are listed : alphabetically by importance by longevity by expected conversion to cash 9 / 10 Cash of $100 received at the time the service was performed was journalized and posted as a debit to Cash $100 and a credit to Accounts Receivable $100. Assuming the incorrect entry is not reversed, the correcting entry is : debit Cash $100 and credit Service Revenue $100 debit Accounts Receivable $100 and credit Cash $100 debit Accounts Receivable $100 and credit Service Revenue $100 debit Service Revenue $100 and credit Accounts Receivable $100 10 / 10 All of the following are required steps in the accounting cycle except : preparing a worksheet preparing fnancial statements journalizing the transactions journalizing and posting closing entries Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback Question topics Classified balance sheet Prepare a worksheet Preparing adjusting entries Preparing closing entries accountingaccounting examaccounting exam financial
